Michael Garrity

Your question has been sent to Michael Garrity. Ask another

• I have an idea but I am not sure if I should build the proof of concept first before pitching the idea or should I pitch before building? I'm fairly certain that the idea requires funding and connections to big retailers.

  • 

    I would suggest both. If you are committed to doing this than you ARE doing this, which means pitching and building every day. What you are building will get more real and your pitch will get better. This will be the same whenever you start so the earlier the better. Ideas are a dime a dozen, momentum behind an idea is the difference between what could have been and what could be. Good luck.

• How do you pitch a startup when you don't know VCs but have a business plan and beta prototype?

  • 

    They all have websites and take submissions. Start there. Also, find a funded company you have a connection to and ask for an intro.

• How much traction should a start-up have before considering outside funding or investment? How many paying customers? How much revenue? Is there a rule of thumb from your experience? Thanks for any insight you can provide.

  • 

    It really depends on the industry type and product type, geography and market timing. 24 months ago, any old group buying or local deal site was getting funded, these days, none of them are. It’s hard to say.

• What hot topics and industry trends do you consider worth following at the moment and in 3 to 5 years?

  • 

    I watch macro economic trends myself and right now I see massive issues (and opportunities) in rising household debt, rising government debt, enviroment crises, and changing economics between first and developing world economies. I know I’m boring.

• Is it a sound strategy to base an innovative product's growth strategy on gaining host-beneficiary or partnership arrangements with others who have their target market? Or is it too risky - should the main growth strategy be direct to the end customer?

  • 

    I’m a huge fan of leveraging someone else’s customer base myself. It’s risky for sure but not as risky as going it yourself in an expensive and marketing saturated consumer market.

• Hi Michael, How do I compete with businesses that can offer similar products/services at a lower cost?

  • 

    Well – that is going to be quite hard to do. not everything is life is about cost – some places charge more and give better, more personalized service instead or can bundle the product into something else with a higher perceived value. If you can’t do any of those things, I would suggest a new line of work.

• I've been working on a business idea for sometime and have found 2 young motivated programmers who are enthusiastic about the possibilities of the idea. We have been working together now for roughly 3 months but talks have been discussed regarding ownership. We came to the conclusion that at this point we are at "...percentage of nothing is nothing...". Where does it come to a point where this requires some focus. (I'm 35, have been working on idea for roughly 9 yrs. Others are early 20's)

  • 

    you could always give people the ol carrot and stick approach of an allocation which a 4 year call option against it – you get 10% of the company but you only really earn 1/48th of it every month you stick around

• Regarding Social Media Sites similar to FaceBook or LinkedIn... is proceeding with a working product with a moving Business Plan a more viable direction to take to achieve funding/growth or should a business plan be produced before having an actual working model. What are most investor's looking for in terms of a solid business? Is there a strategy you would be a more effective plan?

  • 

    Investors look to a working business before looking at a business plan generally. There are some exceptions to this if the idea is REALLY big, but these days, it’s more about “grow and show”.

• Do you believe entrepreneurs are born or are a product of their environment?

  • 

    Both. We all have inside us the ability to be a business operator, I believe. We get the confidence to try from our environment.

• What made you decide to open up in Canada? vs anywhere around the world.

  • 

    I’m Canadian, I live here and love this country (queue the music in the background and the waving flag)….